How we all – consumers and businesses likewise – benefit from the Euro

The European Economic and Monetary Union (EMU) is an outstanding example of successful European integration. Since 1999, as many as 19 countries have been sharing the Euro and benefiting from a stable, internationally significant currency. The elimination of foreign exchange costs and exchange rate fluctuations invigorated trade within the EMU and brought considerable savings for businesses and individuals.

Completing the Banking Union – a never ending story?

The Banking Union (BU) is an essential part of the Economic and Monetary Union (EMU) as it decisively contributes to financial market stability and growth. Both aspects are vital for German industry. But the implementation of the key elements of BU have advanced at different paces and are subject of controversial debate.

Europe grows but lacks necessary reforms

The EU economy will grow about two percent this year. Thus, it reached its peak last year with 2.4 percent. Even though the economy will continue to grow moderately, it lacks necessary reforms. Therefore, the focus of the Econ Jour Fixe, a regular meeting of EU economists from business federations, trade unions, European and international institutions as well as think tanks, was on those countries currently implementing structural reforms.

European monetary policy

The macroeconomic outlook of the Euro area continues to look bright in 2018. In Addition, the inflation rate is approaching the target level of close but under two percent. A change of the monetary policy of the European Central Bank (ECB) is therefore coming up. This adjustment needs to be carried out prudently with proper preparation to avoid financial turmoils with negative impacts on financing conditions of the real ecomomy.

It is high time for Structural Reforms 2.0

Most EU member states experience a slowdown in structural reforms. The current excellent cyclical economic situation covers underlying problems and pressure for reform is weak. Given low productivity growth, monetary tightening and upcoming trade protectionism, more ambitious structural reforms are urgently needed. The deepening of the Economic and Monetary Union (EMU) depends in particular on resilient and strong national economies.

EU reflection paper on monetary union: strengthen the Eurozone

At the end of May 2017, the European Commission published its reflection paper on deepening of the European Economic and Monetary Union (EMU) in which it gave more concrete form and assigned priorities to the proposals in the 2015 Five Presidents’ Report. For German business, a strong and crisis-resistant Eurozone is essential for continuing growth and the creation of secure jobs.

The Five Presidents’ Report on completing Europe’s Economic and Monetary Union

The European Economic and Monetary Union (EMU) and the Euro, Europe’s shared currency, have created growth, prosperity and jobs for the citizens of the EU. However, the crisis and its aftermath have shown that the EMU is in need of fundamental reform. The Five Presidents’ Report published by the European Commission presents comprehensive proposals for completing the EMU.

News

Enhance the Role of European Public Goods

05/04/2018
- European public goods and their purposes have been highly debated by academics and policy makers, particularly in light of the ongoing negotiations on the new Multiannual Financial Framework. At the seventh “Economics Jour Fixe” Meeting in April 2018, BDI discussed the priorities for German...
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A Democracy Catch-up for the Eurozone

10/25/2017
- Lately, the window of opportunity for deepening the Economic and Monetary Union (EMU) has been cited repetitively. Proposals to use this momentum for structural reforms are well-known. But the time may have also come to take a closer look at the democratic accountability of the governance structure...
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Prepare for very hard Brexit

10/05/2017
- BDI Director General Joachim Lang warns: “German firms must prepare for the worst-case scenario of a very hard exit, anything else would be naïve.” The BDI set up a task force to identify potential and acute risks associated with the UK’s exit from the EU and to develop constructive solution...
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A Convergence Code for the Euro Area

07/18/2017
- In recent years, we have seen a lot of efforts in the fiscal area. However, reforms for the general business environment have fallen short. Can benchmarks like the European Commission's country specific recommendations or the proposals of the Organisation for Economic Co-operation and Development...
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Industry Calls for Maximum Damage Limitation During Brexit

03/29/2017
- The extent of damage limitation in regards to the Brexit was largely the responsibility of the UK Government, BDI President Dieter Kempf said. Policy in Brussels and Berlin should have one common approach, namely holding together and strengthening Europe.
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Quo vadis, Europe?

03/17/2017
- The public had mixed reception on the White Paper on the Future of Europe. Jean-Claude Juncker, President of the European Commission, presented five different scenarios. However, he did not commit himself to one of them. At the third “Econ Jour Fixe” on 7 March 2017, Brussels economists from BDI,...
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